Sequester could slash state healthcare funding by $2.1 billion

Hospitals and healthcare organizations in New York stand to lose more than $2.13 billion in Medicare reimbursements if across-the-board cuts -- the sequester -- occur, according to an analysis by the Healthcare Association of New York State.

These cuts would deal a blow to hospitals and healthcare organizations in the Capital District, which would lose more than $78 million. Locally, the four hospitals within the St. Peter's Health Partners would lose a combined $32.8 million Samaritan and St. Mary's in Troy would lose $103 million, while St. Peter's Hospital and Albany Memorial would lose $18.7 and $3.6 million, respectively.

The additional cuts would compound $20 billion providers are expected to lose in the next 10 years. These are the result of a $15.9 billion reduction from the implementations Affordable Care Act, a $4.1 billion loss from medicare in patient coding reductions, and $23.5 million in Medicare cuts in support to providers for patients' unpaid debts.

"An additional $2 billion on top of the $20 billion in cuts our hospitals and health systems already face will have a profound impact on access to care," said HANYS President Daniel Sisto. "This unprecedented level of reductions would significantly reduce patient access to care, and lead to longer drives and wait times, and additional layoffs and service reductions at facilities across the state."

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The reduction in Medicare reimbursements would be accompanied by a loss of $1 million in funds that was to go to helping the state upgrade its ability to respond to public health threats, such as natural disasters like such as infectious diseases, and biological, nuclear and radiological events.

Hospitals and health care organizations in the state lost 6,135 jobs since 2010, according to a HANYS analysis of public records. If the sequester goes into effect, most federal programs will suffer cuts March 1, with the Medicare cuts, capped at 2 percent, going into effect April 1.